An Assessment of the Benefits and Drawbacks of the National Digital Economy Bill

Nigeria’s digital space refuses to slow down despite the economic downturn, fueled by widespread mobile internet adoption and a flourishing tech ecosystem. With 47.3% of Nigerians having internet access and over 124.3 million mobile internet users, the country boasts a vibrant digital landscape. Data released by the Nigeria Inter-Bank Settlement Systems (NIBSS) revealed that Electronic payment transactions in Nigeria surged by 86.44% in the first 6 months of 2024, hitting an all-time high of N566.39 trillion compared with N303.60 trillion in 2023 for the first half.  This growth has attracted significant investment, with over $1 billion flowing into the tech sector in 2022. The digital economy contributes 14.3% to Nigeria’s GDP, highlighting its growing importance. 

However, this dynamic landscape faces various challenges. The digital divide, with unequal access to the internet and digital literacy, persists, particularly in rural areas. Infrastructure gaps, limited internet access, and cybersecurity threats remain significant obstacles to further progress.

 A robust legal framework can address many of the present day challenges and harness the untapped potential of the digital economy. the Nigerian government proposed the Digital Economy Bill, to be known as the National Digital Economy and E-Governance Act, 2024. Bosun Tijani, Nigeria’s New minister of Communications, Innovation, and Digital Economy, released a draft of the bill two weeks after it passed a first reading at the National Assembly. If the bill is passed, it will bring Nigeria closer to e-governance when enacted. The country lags behind other African countries Ghana, Mauritius, South Africa, and Tunisia that have been identified with high e-government development indexes. The move will also contribute to Nigeria’s goal of increasing digital literacy rates.

THE NATIONAL DIGITAL ECONOMY AND E-GOVERNANCE BILL, 2024:

The bill seeks to create a comprehensive legal framework for the digital economy, covering aspects like electronic transactions, data protection, cybersecurity, and digital infrastructure. It aims to address the following key objectives:

Objectives

1. To enhance the use of digital technology to grow Nigeria’s economy.
2. To create an enabling environment for fair competition to promote innovation, growth, and competitiveness for the Nigerian Digital Economy.
3. To create export-oriented capacities in Nigeria’s digital economy to improve Nigeria’s balance of trade and services.
4. To mandate, promote and enable the digital transformation of public institutions and Government processes for efficient and effective service delivery.
5. To encourage and improve service delivery, openness and accountability for delivery of public or citizen digital services.
6. To provide a legal framework to support international digital trade and investments using digital means.
7. To create a framework for the enhancement of digital economy governance amongst the Ministries, Departments and Agencies.

Scope and Application

The National Digital Economy and E-Governance Bill, 2024 applies to a variety of persons  and this includes: 

• Public service institutions.

• Private establishments. 

• Individuals and organisations are conducting digital activities in Nigeria, either wholly or in part.

Comment

Unlike other legislations which contain similar provisions such as the Nigeria Data Protection Act, the National Digital Economy and E-Governance bill is an all encompassing law with a wide scope that makes provisions for all natures of events that take place in the digital space and applies to all manners of natural and artificial persons. 

PART 1 – VALIDITY OF ELECTRONIC TRANSACTION 

This Part contains a provision for the legal recognition of electronic communications. It also permits information that is typically required to be provided in writing to be made available in electronic form. This means that: Electronic documents, emails, or messages are finally considered official replacements for traditional paper-based documents. Additionally, information can be provided through digital means, such as online portals, websites, or electronic data interchange (EDI). Furthermore, the provision in Section 3 of the bill, allows for the replacement of paper or non-electronic forms with electronic versions, provided that:

1. The electronic form maintains the integrity of the information.
2. The means of access are reliable.
3. The purpose and circumstances of access are considered.

Comment

Though it feels a bit of a pyrrhic victory, the reality is the corporate world has long accepted electronic forms of communication nonetheless, the long-awaited alignment between public policy and legislation will only help to spread even wider acceptance and facilitate a faster and more efficient exchange of information, reducing delays and increasing productivity. It also allows for remote communication, reducing the need for physical presence and increasing accessibility. It is also fundamental to state that the legal recognition of electronic communication promotes modern digitalisation and reduces paper usage which therefore supports environmental sustainability or an eco-friendly environment by reducing paper waste. However, it is of prime importance to state that ensuring the authenticity and integrity of electronic information can be more complex than with physical documents as electronic documents and information are more prone to security risks and vulnerabilities than physical documents. Nigeria has experienced cyber attacks and data breaches, which could compromise the security of electronic information. In the same vein, Section 2(4) supports the adoption of electronic record-keeping and promotes a more efficient and secure way of managing information. However, it is crucial to ensure that electronic records are properly backed up and secured and the retrieval processes are reliable and efficient. Further, the provision in Section 3 of the bill has both positive and negative implications. For positive, it encourages the transition to digital records and enhances access to information while it negatively increases access to security risks and concerns for the users. To effectively implement this provision in Nigeria, it is crucial to ensure robust security measures and data protection laws, invest in IT infrastructure and digital literacy programs and develop clear guidelines for electronic information management. By doing so, Nigeria can harness the benefits of digitalization while minimising its drawbacks.

Delivery of Information Electronically

Section 4 makes provision for the delivery of information. This implies the transmission of information in a digital format through electronic means, such as; emails, instant messaging, online document-sharing platforms, etc. 

Comment

This method of delivery offers several advantages which include; speed, convenience, cost-effectiveness, and environmental sustainability. Electronic delivery information is increasingly being adopted, particularly in industries like banking, telecommunications and e-commerce. However, it is crucial to address the challenges associated with electronic delivery, such as infrastructural limitations, digital literacy and security concerns.

Electronic seals and Digital Signature

This provision allows for the use of digital signatures or electronic seals to meet the requirement of affixing a seal to a document, where the law does not specify the method or form of sealing. This means that:

– Digital signatures or electronic seals can be used as a substitute for traditional wax seals or stamps.

– The electronic document must indicate that it is required to be under seal.

– The digital signature or electronic seal must be that of the person or entity required to seal the document.

Comment

Nigerian law provides legal recognition for digital signatures and electronic seals, making them admissible as evidence in court. This by virtue of Section 93(2) of the Evidence Act. Additionally, under Section 17(1) of the Cyber Crime Act 2015, electronic signatures are binding in purchases of goods and other commercial transactions. In the same vein, section 101 of the Companies and Allied Matters Act 2020 provides that an electronic signature satisfies the requirements for the signing of documents requiring authentication by a company. Going by the above, electronic signatures are well recognized under Nigerian law and are valid for a wide range of transactions unless expressly excluded by law.

Admissibility of electronic records as evidence. 

Comments

This provision is in harmony with the Nigerian Evidence Act, of 2011. The admissibility of electronic records as evidence in Nigeria is specifically addressed in Sections 84 and 93 of the Evidence Act 2011. Case authorities which support these provisions are Nwoye v FRN 2019 LPELR 47095 CA: Electronic evidence, such as emails and text messages was admitted as evidence. Adeleke v Oyetola (2020) 6 N.W.L.R. (Pt. 1721) Pg.440, Electronic evidence such as scanned documents and video recordings was admitted as evidence. Dabiri v Attorney General of the Federation: Electronic evidence such as computer-generated documents and audio recordings was admitted as evidence.

PART II – ELECTRONIC CONTRACTS 

This Part recognises the validity of electronic contracts. This implies that electronic contracts are similar in nature to the traditional commercial contract only that it is initiated and concluded through electronic means.

Section 11 of the bill further provides that electronic communications can demonstrate an intent to contract, which is essential for forming a valid contract. Also, Section 12 makes provision for the time and place of dispatch and receipt of electronic communications. Moreover, Section 13 provides for the invitation to make an offer or treat with respect to an electronic contract. This provision clarifies the nature of electronic proposals that are not addressed to specific parties but are generally accessible through information systems. It states that such proposals are considered invitations to make an offer rather than binding contracts unless they explicitly indicate the intention to be bound upon acceptance. Finally, the use of automated message systems for contract formation is recognizable under this Part of the bill.

Comment

In Nigeria, the validity of a declaration of intent in electronic communications is recognized under the Evidence Act. This was established in the case, Nwoye v FRN (Supra) where the court recognized electronic evidence, including email and text messages as admissible to prove intent to contract. Likewise, in the case of Adeleke v Oyetola (supra), the court accepted electronic evidence, including scanned documents and video recordings to establish intent to contract. 

Moreso, the legal provision governing the time and place of dispatch as well as the reception of electronic communications is crucial in today’s digital age. The laws provide clarity and certainty, ensuring that parties know when and where electronic communications are deemed sent and received.

Furthermore, the provision with respect to an invitation to make an offer allows for flexibility in electronic commerce, enabling businesses to showcase products or services without being bound by every inquiry, by presuming that such proposals are invitations to make offers, businesses are protected from unintended contractual obligations. However, the provision equally creates uncertainty for consumers as consumers may be uncertain about the binding nature of their actions, potentially leading to confusion or unintended consequences. Also, the provision relies on the clarity of the proposal’s language, which can be subjective and lead to disputes. Lastly, the use of automated message systems for contract formation offers efficiency and convenience but raises legal concerns. Automated systems may struggle with nuances, leading to potential misrepresentation. In the same vein, technical errors or glitches can lead to incorrect or unintended contracts.

PART III – ELECTRONIC SIGNATURES

This provision clarifies that electronic records can satisfy legal requirements for signatures, as long as a suitable method is used to verify the identity of the individual signing the electronic record and clearly indicate the person’s intention regarding the information in the electronic record. The implication of this is that electronic records with suitable identification and intention indicators are considered equivalent to traditional paper-based signed documents. The Act further provides for presumptions relating to digital records and signatures as authentic and reliable unless proven otherwise.

Comment

The presumption relating to digital records or signatures assumes that digital records or signatures are secure, which may not always be the case as technical issues, such as system failures or data corruption, can undermine the reliability of digital records or signatures.

PART IV – ELECTRONIC TIME STAMPS

The provision ensures that electronic time stamps have legal effect and are admissible as evidence in legal proceedings. Further, electronic time stamps are exempted from the specific requirements set out in Section 27 of the bill. This Provision aligns with the principles of electronic commerce, promoting the use of electronic documents and signatures. It is required that the electronic time stamp must be linked to the data in a way that prevents tampering or alteration without detection, the time stamp must be based on an accurate time source, synchronised with coordinated universal time, lastly, the time stamp must be authenticated using a digital signature or equivalent method.

Comment

This provision is commendable given that it ensures that electronic time stamps provide a secure, accurate and reliable way to establish the timing of electronic transactions and data creation.

PART V

Part V of the bill essentially deals with the applicability of this bill to controlling a transferable document or instrument, including laws pertaining to consumer protection, applied to an electronic transferable record.

The bill also makes provision for the inclusion of information in electronic transferable records in a transferable document or instrument. Going forward in section 26 to list the conditions under which an electronic transferable record is deemed reliable, such as assurance of data integrity, security of hardware and software, specificity of reliability applicable by a particular industry or if the electronic transferable record has proven to have fulfilled the function itself or in convergence with other evidence. 

Section 27 provides for the legal requirements for data messages to be deemed an electronic transferable document or instrument as the inclusion by the data message of information required to be contained by transferable documents or instruments. A reliable method is employed to identify a data message as an electronic transferable record if that data message is capable of being subject to control from its creation until it ceases to have any effect or validity and the integrity of that data message is maintained. The criterion for assessing the integrity of the data message is if the information contained in the electronic transferable record, together with any authorised change that arises from its creation until it ceases to have any effect or validity, has remained complete and unaltered apart from any change which arises in the normal course of communication, storage and display.

The requirement of any law as to the possession of a transferable document or instrument, with respect to an electronic transferable record of a reliable

The method is adhered to if it is used to establish exclusive control of that electronic transferable record by an individual and identify that person as the person in control. Furthermore, the legal requirement or permits transfer of possession of a transferable document or instrument is met with regards to an electronic transferable record via the transfer of control over the electronic transferable record. The legal requirement of an indication of the time for a transferable document is adhered to when a reliable method is used to indicate that time or place with respect to an electronic transferable record.

Section 32 provides for cases where a reliable method for the change of medium is employed for the change of medium to become effective, a statement indicating a change of medium shall be inserted in the electronic transferable record. Upon issuance of the electronic transferable record in accordance with this section, the transferable document or instrument shall be made inoperative and cease to have any effect or validity. An electronic transferable record may replace a transferable document or instrument in all the above circumstances.

A change of medium in accordance with this section shall not, however, affect the rights and obligations of the parties.

Section 33 deals with the replacement of an electronic transferable record by a transferable document or instrument if a reliable method for the change of medium is used; and a statement indicating a change of medium is inserted in the transferable document or instrument.

Upon issuance of the transferable document or instrument in accordance with this section, the electronic transferable record shall be made inoperative and cease to have any effect or validity. A change of medium in accordance with this section shall not affect the rights and obligations of the parties. 

By the provision of section 34 of the bill, it is illegal to discriminate against foreign electronic transferable records. The section also provides for the applicability to electronic transferable records of rules of private international law governing a transferable document or instrument.

Comment

The regime of electronic transferable records is the concern of this part, this part encourages the use of transferable records as a legal means of transaction in an evolving digitised commercial space.

Also read: Constitutional Issues Relating To The Finance (Amendment) Bill 2024 And The Appropriation (Amendment) Bill 2024

PART VI

Section 35 of the bill relates to the Carriage of goods, stipulating what specific acts are regarded as being in connection with or pursuance of a contract of carriage of goods such as furnishing the marks, number, quantity or weight of goods; issuing a receipt for goods, confirming that goods have been loaded; authorising release of goods; giving notice of loss or damage to goods, etc. Any legal requirement for writing in a paper document in the foregoing is met by using one or more data messages, if any right accrues to anyone, or an obligation through a paper document, such requirement is executable through the procedure above. In the case of the replacement of a paper document with a data message as above, a reverse of the situation shall not be possible unless the data message was specifically terminated.

In the case that a law of carriage of goods has a specific requirement for a paper document, such law shall be inapplicable to contract evidence by data message by the mere presence of the latter in the transaction instead of the strict requirement of the law for a paper document.

Comment

The mode of the displacement of paper contract by the now emerging data message. The bill encourages the digitalisation of contracts which is a worthy innovation.

PART VII

Section 36 of the bill provides for consumer protection. It provides that a service provider or vendor shall provide a consumer with sufficient and relevant information on the products, and services, to enable informed decisions on the part of that consumer. The information shall be: clearly presented in a language the consumer understands; accurate; conspicuously displayed at appropriate stages of the consumer’s decision-making, particularly before the consumer confirms transactions or provides any personal information; and capable of being saved or printed by the consumer. The service provider shall in addition ensure that such information is current, accurate, not deceptive and misleading to the consumer.

A service provider or vendor shall identify itself and provide information about its business terms, conditions, policies, and practices stating enquiry, complaint and claim procedures, warranty or other support services related to its goods or services before the commencement of the transaction. The vendor shall also provide a description of the goods or services including the quantity to be

purchased, the full price, including the applicable currency; any shipping charges, taxes, and specific reference to any other charges that the vendor is responsible for collecting; when the vendor cannot reasonably ascertain the amount of potentially applicable charges including additional taxes, customs fees, custom broker fees and the fact that such charges may apply; and when the full price cannot be worked out in advance, the method the vendor will use to calculate it, including any recurrent costs and the method used to calculate such costs. All this information shall be provided within a reasonable time after the transaction has been completed.

Section 37 of the bill relates to making information available to the consumer in a language they understand, such information should also be as accurate, clear and succinct as it can be in order to allow the consumer to make an informed decision about whether to enter into the contract or otherwise. The consumer also has the right to the cancellation of the contract before it is processed.

A service provider or vendor is also obligated to provide the consumer with the terms, conditions, policies, and practices stating enquiry, complaint and claim procedures, warranty or other support services related to its goods or services before the commencement of the transaction. In the event that the service provider or vendor is unable to deliver the contract as agreed between the parties, such service provider shall notify the consumer promptly and provide an avenue for the consumer to put an end to the contract at no cost to him.

The consumer shall be free of any charge whatsoever in relation to a transaction if the goods delivered to him by the service provider/vendor are materially different from the one contracted for, the service provider withheld vital information which could have affected the decision of the consumer to procure such goods or services or the service provider neglected/failed to deliver the goods at the time specified in the contract. The service provider/vendor consequently owes an obligation to the consumer to any reasonable costs incurred by the consumer in any of the above circumstances.

Section 38 of the bill imposes the responsibility of keeping confidential information of the consumer that he volunteers to the service provider in the process of entering into the transaction unless the consent of the consumer is obtained or where the law demands disclosure. A service provider or vendor shall also make its privacy policy public and make it easily accessible to the consumer at all times. Additionally, the test of a reasonable man shall be applied to the use of the personal data of consumers by the service provider.

The service provider shall be responsible for the use of personal data by third parties he discloses to them, he also ensures that such parties comply with the relevant data protection law in Nigeria. 

Section 39 of the bill obligates the service provider via electronic medium to provide correct information including their legal name, their principal geographic address, and an electronic means of contact or telephone number and every other detail necessary to enable consumers to contact them. Concise and accurate information about their goods and services, as well as their terms and conditions for offering the same. Methods of payment; and details of and conditions related to withdrawal, termination, return, exchange, cancellation and refund policy information;  are also an obligation of the service provider under the bill.

The bill in Section 43 provides for online dispute resolution with respect to consumer protection in electronic commerce. The responsibility of developing an online medium for dispute resolution to be used for this purpose is to be borne by the Federal Competition Consumer Protection Commission. The Act prohibits the service provider from sending unsolicited messages to the consumer and obligates the service provider to create an option for the consumer to stop receiving the message.

Comment

This part generally provides for the rights of the consumers to have information which would aid them in making an informed decision on whether or not to procure the service offered by the service provider. The service provider also has the responsibility to volunteer all necessary information, including their own legal names and accurate mode of contact. The processing of consumer information, which is an interesting issue, is also addressed as well as the legitimacy of sharing such consumer information with third parties and responsibilities that arise therefrom. The fact that commercial activities now largely take place online has also necessitated the creation of online dispute resolution manned by FCCPC, which is a novel and laudable innovation.

PART VIII

This part deals with the use of electronic documents via electronic records and signature by government agencies. All government agencies and parastatals who accept the filing of documents, or obtains information in any form, issues any permit, licence or approval; or requires payment of any fee, charge or other amount by any method and manner of payment, may carry out such function by electronic form.

An unspecified regulatory agency provides the guideline for the manner and format in which the electronic records shall be filed, created, retained, issued or provided, and the type of electronic signature required for signature, including, if applicable, a requirement that the sender of the record uses a particular type of digital signature and any other required attributes for electronic records or payments that are currently specified for corresponding paper documents.

In the circumstances that a law requires a paper document available for inspection, such requirement shall be met when an electronic copy of such document is volunteered, such document satisfies the requirements of being retained to the party receiving it, accessible to be retrieved or retained, usable and contains the same or substantially the same information as the paper form.

Comment

The requirement for the submission of an electronic document in lieu of a paper document to fulfil any legal obligation for document submission is laudable. The regulatory agency charged with the responsibility of providing the guideline for the transfer of electronic records within government parastatals and agencies that is unnamed is obviously a drawback on the laudable provision as indecisiveness/ ambiguity can lead to undue delay in the implementation of this provision.

CHAPTER IX

MANAGEMENT AND OPERATIONS OF DIGITAL GOVERNMENT

This chapter consists of 4 sections which are Sections 47, 48, 49 and 50

SECTION 47 provides that the National Information Technology Development Agency shall ensure that each federal institution has a digital government that sees to the effective use of ICT. while Section 48 provides for the creation of ICT units in every public institution to provide such services as required under the act and provide digital transformation of functions in the respective public institutions. Section 49 provides for compliance with the regulations as set out by NITDA and submission of proof of compliance to NITDA. It also makes it compulsory for the promotion of the public officer.

Comment

The chapter is highly commendable, especially section 48. The establishment of ICT units in our public institutions is a good one; it will help in the fast track of procedures in public institutions. Section 49 is also a good one, The mandatory provision for submission of self-assessment is a good initiative and commendable; this would help determine the shortcomings of the institution and the regulations itself. Also, the digital literacy certification for public officers is highly commendable as it makes the public institution function like a modern one. Section 50 is highly commendable, it urges the public servants to sit up as certain information about them is now accessible and subject to scrutiny. The information cadre is also a good one, it might create healthy competition amongst the institution and encourage everyone to want to do better.

Shortcomings

For Section 47, the complete reading of the provisions of this bill would show that this is an unwarranted section, the section creates a governance structure that is not clear. Is NITDA expected to appoint a governing body or create a governing constitution for Public Institutions? If it is the former who is going to pay them? These are questions begging to be answered. The training of the staff in the proper use of ICT is what we should be looking at, not creating a government structure that might not even be vast in the knowledge of ICT. Section 49 also has its shortcomings: the self-assessment part means the public institution can grade themselves high or even forge assessments. There should be a standard assessment everyone is subjected to.

Comparison with other countries

To make the management and operations of the Digital Economy easy, Armenia was divided into parts to be handled by different ministries. We have the E-Payment that’s managed by the Ministry of Finance which ensures that state fees, local fees, administrative penalties or services provided by state and local governmental bodies are paid into an account which makes E-governance easier. We have the E-Draft managed by the Ministry of Justice of Armenia. It is designed particularly for publication of any draft initiated by the government or member of Parliament. The database can be accessed through a website which provides the possibility of presenting the legal acts’ drafts to the public, organising online discussions, and as a consequence – the active participation of representatives of civil society in the law-making process. The website enables them to search legal drafts, follow their further progress, and become familiar with the presented suggestions. The registered users can present suggestions, and get informed with the “summary paper” of the suggestions to the draft, the adopted suggestions or the reasoning concerning the not adopted ones.

This and more screams digital economy and its management and this is totally different from what is provided for under this Act.

PART X – DIGITAL GOVERNMENT INFRASTRUCTURE AND SYSTEMS

This part provides for the use of government-approved infrastructure and systems by public institutions and in the situation of construction of government-owned infrastructure amongst others. It also provides for the implementation of ICT projects as prescribed by NITDA, the effective use of the proper utilisation of the ICT gadgets acquired by using it for public service, keeping a register for it and making some other developments around it.

Comment

This is a good one, it provides for cost-effectiveness as government things tend to be more affordable. Section 53 especially is highly commendable, it shows that the government is taking serious steps in the management of its resources, the registry would also help the public know if it is the government that is depriving a particular institution of ICT gadgets or it is the Public Officers that have mismanaged government properties. The section provides for accountability and also helps curb corruption.

Shortcomings

The problem here is that government-approved infrastructure and systems are not ready for this shift. Government facilities are not even in line with what is obtainable in the modern day; the provisions of Section 51 might be put on hold for now. Also for Section 52, there are lots of questions begging for answers such as to who the ICT projects should be before, is it for the institution or the public? Who is supposed to cover the cost of the projects? This section provides many ambiguities and can be misconstrued. It also appears it will create extra cost for the government and the value in return is not worth it. This provision should only apply to institutions that are required to create development programs for the society or institutions dealing solely with ICT, not all public institutions.

PART XI – DIGITAL GOVERNMENT SERVICES

This part seeks to digitalize the doings of the public institution, it seeks to take digitalization to everyone who is in use of public institutions regardless of the platforms they are comfortable with. It also promotes the use of artificial intelligence, it also seeks to reduce paper documentation by storing information digitally and provides for the storage of information electronically and its validity to the extent of any law which requires the storage of information. There is also provision for the digitalization of the federal gazette i.e. the creation of electronic gazette. This part also provides for communication amongst government agencies and the creation of e-channels by public institutions to make the same seamless.

Comment

This is also a good one, the digitization of everything provided for ease and the thoughtfulness of including all platforms that the public finds comfortable shows inclusivity so this section is highly applaudable. It is commendable that we want to move from having hard copies to soft copies. It is in line with what is obtainable in the modern age and it helps reduce the risk of loss and damages. The provision for storage of information electronically is commendable, it helps preserve data for a long time and the provision of the subsection section which mandates it to be in accordance with the Nation Archives Act is applaudable. 

Shortcomings

We might however want to take it easy with digitalization, there should still be paper records as they transcend time also because we are not certain of our ICT capabilities we might not have the necessary capabilities to store huge files. We cannot ease the risk of viruses, cyber security issues and others too. We should not disregard paper documentation totally. The provision for records or information obtained during the process of audit to be stored electronically is also a good one as it provides for ease of administration; it is however susceptible to ICT problems such as viruses, cyber theft, and breach of data privacy.

Comparison with other country

One method by The Republic of Azerbaijan to digitalize their economy is by State portal www.e-gov.az which was established to facilitate citizens in benefiting from e-services provided by government agencies on a “single window” principle with the combination of services. Through the e-government portal, citizens can use more than 140 e-services of 27 state agencies. Besides, a gateway between government agencies was established to ensure the mutual exchange of information, and most state agencies are connected to this infrastructure. The gateway allows users to efficiently use the existing government information systems and safe contact between them, issuing requests and rendering e-services, liberating citizens from providing the same information or documents which are already available in information databases. 

This particular part can be added to the provisions of this section as it sets out what NITDA is meant to do for the purpose of digitalization to submit the digital economy.  Bangladesh, China, USA, India and Canada amongst others are some of the countries that have created the central website in pursuance of the digital economy.

PART XII OFFENCES AND CONTRAVENTIONS

The offences and contravention section provides for the punishment of offenders who contravene the provision of the bill. The punishment is basically a fine of 10,000,000 (Ten Million Naira) save section 62(3) which provides for the punishment of 1,000,000 (One Million Naira) for persons who contravene the frameworks and others prescribed by NITDA.

This punishment section seems to have a major red flag which is the fine amount, the fine is not commensurate with any breach that might occur nor does it tally with the salary that persons working in the institution might earn meaning the government would have 90% of the time be unable to recover this fine. Demotion, denial of promotion, termination of employment and others are a suitable punishment in this instance.

In the case of a body corporate, the money would be paid from government revenue so this does not in any way affect the public institution, the act already provides that the Chief Executive Officer is liable then why is the body corporate responsible for the fine? He should be liable and it does not necessarily mean he should pay the 10,000,000 (Ten Million Naira) fine, he can be removed. This would serve as a deterrent to others, instead of using the government money to pay fines and the person liable would continue to hold office without consequences.      

PART XIII: Supremacy of National Digital Economy and E-Governance Act and Other Regulations

Part 13 of the act confers upon the bill, supremacy and overriding powers over the provisions of any other Law in all matters relating to the digital economy and e-government. This power is, however, subject to the provisions of the Constitution of the Federal Republic of Nigeria. The bill also gives the National Information Technology Development Agency concurrent jurisdiction with regulatory agencies and the relevant public institution having precedence over matters or conducts which affect the digital economy and electronic government.

This part also gives the National Information Technology Development Agency the power to establish regulations on the use and adoption of new and emerging technologies as it relate to information technology.

Comment

The provisions of Part 13 of this bill is misleading and will lead to probable clashes between NITDA and other Government Agencies with jurisdiction over matters affecting the digital economy and electronic Government. The provision of Section 62(4) of the bill which refers to disagreements between agencies to the Attorney General and Minister of Justice is a reactive solution which can be proactively solved by excluding Section 62 (3)&(2) from the bill. 

CONCLUSION 

The National Digital Economy and E-Governance Bill, 2024, presents a critical opportunity for Nigeria to accelerate its digital transformation and enhance its position in the global digital economy. By establishing a comprehensive legal framework for electronic transactions, digital signatures, and e-governance, the bill aims to promote innovation, efficiency, and transparency while addressing cybersecurity risks and data protection. However, for the bill to be effective, Nigeria must address the existing challenges of infrastructure development, digital literacy, and cybersecurity enforcement. With proper implementation, the bill can unlock the full potential of Nigeria’s digital economy and position the country as a leader in the digital era.

Contributors

Beverley Agbakoba-Onyejianya

Partner

Emmanuel Agherario

Associate II

Esther Odunze

Associate